Idbi Bank Limited · NSE:IDBI
Idbi Bank — Q3 FY2021 Earnings Presentation
45 slides from Idbi Bank's earnings presentation, Jan 28, 2021
Slide 1: Exchange cover letter for investor presentation
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Slide 2: Investors Presentation Financial Results Q3 FY 2020-21
INVESTORS PRESENTATION FINANCIAL RESULTS Q3 -FY 2020-21 January 28, 2021 Page 1
Slide 3: Content
Content 1 Highlights 2 Financial Performance 3 Business Performance 4 Treasury Operations 5 Asset Quality 6 Capital 7 Prompt Corrective Action Matrix 8 Digital Banking and Financial Inclusion 9 Subsidiaries 10 Way Forward Page 2
Slide 4: Highlights
Highlights Page 3
Slide 5: Major Highlights for Q3 FY 2021 – Continued Balance Sheet Strengthening
Major Highlights for Q3 FY 2021 – Continued Balance Sheet Strengthening Capital Raised Equity Through QIP RWA - Rs.159078 cr CRAR - 14.77% 4% YoY reduction First Capital raise by the Bank from Public after 25 Tier 1 - 12.22% years (maiden IPO of Bank in 1995) Base issue size of Rs.1000 Crore and Gre
Slide 6: Key Metrics for Q3 FY 2021
Key Metrics for Q3 FY 2021 Profitability - Strong operating momentum PAT of Rs.378 crore, as against Net Loss of Rs.5763 crore for Q3 FY 2020. PAT grew by 17% QoQ. PBT at Rs.843 crore, up by 12% YoY and 27% QoQ Operating Profit at Rs.1639 crore, up by 28% YoY and 32% QoQ NII at Rs.1810 crore
Slide 7: Key Metrics for Q3 FY 2021
Key Metrics for Q3 FY 2021 Asset Quality - Improving Trend Net NPA at 1.94%, improved by 331 bps YoY and by 73 bps QoQ GNPA at 23.52%, improved by 520 bps YoY and by 156 bps QoQ PCR improves to 97.08%, up by 467 bps YoY and 112 bps QoQ Proforma Slippages Rs.1294 crore. Including Proforma Sli
Slide 8: Financial Performance
Financial Performance Page 7
Slide 9: Profit & Loss
Profit & Loss (Rs.Crore) Quarter ended Variance Nine Month Ended Particulars Variance % FY 20 Dec-19 Sep-20 Dec-20 YoY% QoQ% Dec-19 Dec-20 Interest Income 4937 4689 4564 (8) (3) 15227 14151 (7) 20825 Interest Expenses 3405 2994 2754 (19) (8) 10605 8873 (16) 13847 Net Interest Income 1532 1695 1810 1
Slide 10: Provisions & Contingencies
Provisions & Contingencies (Rs.Crore) Quarter ended Variance Nine Month Ended Particulars Variance FY 20 Dec-19 Sep-20 Dec-20 YoY QoQ Dec-19 Dec-20 Depreciation on Investment 484 205 (105) (589) (310) 1677 1106 (571) 1697 Provision – NPAs 440 (165) 49 (391) 214 10994 (1451) (12445) 9483 Provision –
Slide 11: Yield Ratios (cumulative)
Yield Ratios (cumulative) Yield on Advances NIM 9.56% 9.56% 2.81% 2.79% 2.61% 9.54% 9.53% 2.76% 2.25% 9.22% Dec 19 FY 20 June 20 Sep 20 Dec 20 Dec 19 FY 20 June 20 Sep 20 Dec 20 Cost To Net Income 58.30% 53.60% 55.35% 52.25% 51.71% Dec 19 FY 20 June 20 Sep 20 Dec 20 Page 10
Slide 12: Business Performance
Business Performance Page 11
Slide 13: Balance Sheet
Balance Sheet (Rs.Crore) As at Dec-19 Sep-20 Dec-20 LIABILITIES Capital 10381 10381 10752 Reserve & Surplus 23508 24117 25545 Deposits 218180 223915 224399 Borrowings 35822 36422 30647 Other Liabilities & Provisions 10046 10604 11331 Total 297937 305439 302674 ASSETS Cash & Balance with RBI 12012 92
Slide 14: Business Performance
Business Performance (Rs.Crore) Particulars Dec-19 Sep-20 Dec-20 Total Business [Deposit + Net Advance] 347851 350018 348864 Total Deposits 218180 223915 224399 CASA Share % 47.65% 48.33% 48.97% CASA Deposits 103966 108217 109880 Saving Deposits 61926 68341 70952 SB Deposits to Total Deposits % 28.3
Slide 15: Advances
Advances (Rs.Crore) Parameters Dec-19 Sep-20 Dec-20 YoY var.(%) QoQ var.(%) Global Gross Advances 172386 163841 159663 (7) (3) - Corporate 77692 68081 63971 (18) (6) - Retail 94694 95760 95692 1 - Corporate : Retail (Ratio) 45:55 42:58 40:60 Standard Gross Advance 122883 122751 122104 (1) (1) Global
Slide 16: Retail Products Growth
Retail Products Growth (Rs.Crore) Structured Retail Assets Dec-19 Sep-20 Dec-20 Growth (YoY) (%) Growth (QoQ) (%) HL including LIP 41594 42967 42795 2.89 (0.40) LAP 12751 12825 12818 0.53 (0.05) AL 2010 1870 1869 (7.00) (0.07) EL 1059 1086 1058 (0.11) (2.55) PL 591 603 582 (1.59) (3.44) Structured R
Slide 17: Priority Sector
Priority Sector (Rs.Crore) Dec 19 Mar 20 Dec 20 Growth over Particulars Amount % of ANBC Amount % of ANBC Amount % of ANBC March-20 1 2 3 4 5 6 7 (8)=[(6)-(4)] ANBC 188128 186090 164885 Priority Sector Advances (a+b+c) 78648 41.81 77586 41.69 69525 42.17 (8061) (a) Agriculture (i+ii+iii+iv) 34122 18
Slide 18: Treasury Operations
Treasury Operations [@)IDBI Bank] P2002?
Slide 19: Investments
Investments (Rs.Crore) AFS BREAKUP 1596 Category Dec-19 Sep-20 Dec-20 1354 885 HTM 59270 58164 55519 AFS 24652 29123 26736 HFT 793 419 528 Total 84714 87706 82783 Government securities Shares (Equity& Preference) 22901 Debentures/ Bonds CPs/CDs/MF/VCF/PTC'S,Security Receipts,etc Modified Duration of
Slide 20: Asset Quality
Asset Quality Page 19
Slide 21: COVID-19 – Provision Details
COVID -19 – Provision Details (Rs.Crore) Particulars Provision In QE ended March 2020 247 In QE ended June 2020 189 In terms of RBI circular for Resolution Framework for COVID 19 related stress (August 06, 2020) @ 340 Proforma Slippages provision # 285 Reversal of overdue interest & 84 Total COVID 1
Slide 22: Asset Quality
Asset Quality PCR improved from 92.41% (Dec 2019) to 97.08% ( Dec 2020) (Rs.Crore) Particulars Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Gross Advances 172386 171690 165890 163841 159663 Gross NPAs 49503 47272 44475 41091 37559 Gross NPAs as % of Gross Advances 28.72 27.53 26.81 25.08 23.52 Total Provision
Slide 23: Asset Quality with Proforma Slippages
Asset Quality with Proforma Slippages (Rs.Crore) Segment Gross NPA Provision Net NPA LCG (A) 298 98 200 MCG (B) 102 21 81 Retail (C) 894 165 729 - out of Retail - SRA 400 63 337 - out of Retail - Non SRA 492 101 391 - out of Non SRA – Agriculture 187 29 158 - out of Retail - other 2 1 1 Total (A+B+C
Slide 24: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Q3 FY 20 Q4 FY 20 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 Opening Balance 52053 49503 50028 47272 44475 41091 Add: a. First Time NPA 2113 727 8384 69 32 - b. Increase in existing NPA 1007 531 2638 62 79 35 Less: c. Settled 3136 1457 6556 1288 1261 736 d. Up-gradation 295
Slide 25: NCLT – Summary
NCLT – Summary (Rs.Crore) NCLT Admitted PCR % DA 3 and Loss DA 2, DA 1 & SSA TWO 45756 100% 100% 99.92% 28685 26,953 99.86% 5484 10,481 8,322 11587 RBI List 1 RBI List 2 Others Total RBI List 1 RBI List 2 Others Total Asset Class of NCLT Cases Filed But Not Admitted PCR% Filed By 17598 17598 100% 15
Slide 26: SMA Position
SMA Position (Rs.Crore) SMA 0 SMA 1 SMA 2 7894 7860 6742 5971 5326 2990 3033 3084 2956 2927 2555 2349 1977 1709 1542 1229 1012 922 530 493 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Corporate Retail 5279 5826 4038 5413 2317 2615 1933 2034 1329 767 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Total SMA includes NFB of
Slide 27: Capital
Capital [@)IDBI BANK] Pave20
Slide 28: Capital Adequacy
Capital Adequacy (Rs.Crore) Particulars Dec-19 March-20 Jun-20 Sep-20 Dec-20 CET 1+CCB (Rs.) 16453 16736 17051 17403 19444 AT 1 (Rs.) 330 49 - - - Tier 1 Capital (Rs.) 16783 16785 17051 17403 19444 Tier 2 Capital (Rs.) 3971 4344 4470 4106 4051 Total Capital (Rs.) 20754 21128 21521 21509 23495 RWA (R
Slide 29: Shareholding Pattern
Shareholding Pattern (Rs.Crore) Dec 2019 Dec 2020 0.15% 1.74% 2.99% 2.29% 47.11% 45.48% 51.00% 49.24% LIC GOI FI/FPI/Banks/MF/Insurance Others LIC GOI FI/FPI/Banks/MF/Insurance Others Particulars Dec-19 Dec-20 Book Value (Rs. per share) Rs.26.33 Rs.27.86 Market Capitalisation Rs.38,408 Cr Rs.33,440
Slide 30: Prompt Corrective Action Matrix
Prompt Corrective Action Matrix Page 29
Slide 31: Prompt Corrective Action (PCA) Matrix
Prompt Corrective Action (PCA) Matrix Risk Dec-20 Criteria Indicator Threshold 1 (T1) Threshold 2 (T2) Threshold 3 (T3) IDBI – Actual CRAR+CCB Complied <11.5% but >=9% <9% but >7.5% <7.5% 14.77% Capital (Breach (9%+2.5%) With of either CRAR or CET1 Ratio to trigger PCA) CET 1+CCB >=4.875% but Compli
Slide 32: Indicators on Parameters of PCA
Indicators on Parameters of PCA CET 1 % CRAR % Net NPA % 12.22% 13.31% 13.67% 14.77% 5.25% 10.54% 11.06% 12.56% 13.37% 10.59% 9.96% 4.19% 3.55% 2.67% 1.94% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Provision Coverage Ratio % Credit RWA t
Slide 33: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion Page 32
Slide 34: Distribution Network
Distribution Network Branches and Offices as on Dec 31, 2020 Rural 75 427 Semi Urban 464 Urban 2 Metro 208 61 DIFC & GIFT City RAC 585 409 38 Regional Offices 12 12 CPC 10 CPU/CCU/CMS/RPU Zonal Office ZTC / Head Training Center Page 33
Slide 35: Digital Footprint
Digital Footprint Customer Induced Financial Transaction Analysis UPI YTD Dec 2019 YTD Dec 2020 ATM Cash withdrawl 2% 1% Branch Manual Transactions 1% 4% Debit Card 4% 2% 5% Branch Initiated Digital Transactions 8% 28% Internet Banking 6% 7% 86% customer 91% customer NACH induced induced Mobile Bank
Slide 36: Digital Footprint
Digital Footprint Internet Banking Users (In Lakhs) BHIM UPI User (In Lakhs) Mobile Banking Users (In Lakhs) 118.74 37.98 33.90 26.77 109.92 29.25 Dec-19 Dec-20 Dec-19 Dec-20 Dec-19 Dec-20 Debit Cards Issued (In Lakhs) Merchants Base (in lakhs) Processed 1.50 crore transactions at Ecom/ POS in Q3 FY
Slide 37: Digital Footprint
Digital Footprint Payment Acceptance Channels (as on Dec 31, 2020) 128468 30238 30396 3394 3123 ATMs/CRMs Physical PoS Bharat QR Merchants BHIM / UPI Merchants AePS Merchants Page 36
Slide 38: Digital Footprint – Go Mobile+ and WhatsApp Banking
Digital Footprint – Go Mobile+ and WhatsApp Banking NEW FUNCTIONALITIES/ SERVICES Rupay NCMC card (National Common Mobility Card) was launched by Honourable Prime Minister on 28th December, 2020 at Delhi metro with an objective to provide seamless connectivity to passengers across all transit system
Slide 39: Financial Inclusion
Financial Inclusion PMJDY ACCOUNTS Total PMJDY A/c (lakh) Aadhar Seeding under PMJDY 6.54 (Lakhs) 8.46 RuPaycards issued (Lakhs) 7.07 8.45 8.44 Sub Service Areas (Number) 490 8.43 8.43 Villages Covered (Number) 488 Dec, 2019 Mar, 2020 Jun, 2020 Sep, 2020 Dec, 2020 Transactions through Individual Bus
Slide 40: Financial Inclusion
Financial Inclusion MUDRA Yojana as on Dec 31, 2020 (Rs.crore) Sanction Outstanding 1787 1418 1339 819 188 91 Shishu (No. of A/c - 82796) Kishor (No. of A/c - 85208) Tarun (No. of A/c - 43531) Enrolment under Social security Scheme as on Dec 31, 2020 APY Subscription (in lakh) PMSBY Enrolments (in l
Slide 41: Subsidiaries
Subsidiaries Page 40
Slide 42: Subsidiaries
Subsidiaries (Rs.Crore) Income PAT RoA Net Worth Name of Company % Holding Line of Activity 9M FY 2021 9M FY 2021 9M FY 2021 9M FY 2021 Merchant Banking & Retail 62.96 3.25 1.25% 308.50 IDBI Capital Market & Securities Ltd 100 Broking (52.12) (-3.90) (-1.39%) (311.02) 85.9 9.72 11.61% 72.75 IDBI Int
Slide 43: Way Forward
Way Forward Page 42
Slide 44: Looking Ahead : Focus Area
Looking Ahead : Focus Area Improving NII with growth in Advances. NIM in line with Industry Benchmark >3 Operating profit improvement from Core Business & Fee Income Maintaining growth capital for 10% - 12% growth for next 2 - 3 years Improvement in ROA & ROE Recovery from NPAs and TWO accounts thro
Slide 45: Thank You
THANK YOU